Visitors check out some equipment at the 2015 Midwest Ag Expo at Gordyville USA near Gifford, Ill. on Jan. 28, 2015. (Karen Campbell/WJBC)
By Carrie Muehling
GIFFORD – Attendance on Wednesday was strong at the opening day of the 2015 Midwest Ag Expo at Gordyville USA, near Gifford.
“Even though the markets are red today, farmers are actually optimistic. We’ve had quite a bit of traffic so far today, guys out kicking the tires,” said Rob Shaffer, who was staffing the Diversified Services booth.
Shaffer said farmers want to have an idea about the latest technology and newest products available. Although they might not be buying new equipment because of falling commodity prices, they are still working to increase efficiency wherever they can.
“The cutbacks are coming if they haven’t come already. I’ve talked to a few guys as far as with the Section 179 getting extended the last part of last year. A couple of equipment didn’t sell as much as they thought they might. They did get a few deals done, but I think they had bigger expectations than what actually got done by the stroke of midnight on Dec. 31,” said Shaffer.
Shaffer said coming off record incomes in recent years, farmers are making adjustments as they push the pencil for 2015.
“We knew it was coming. We just didn’t think it was coming this quick,” said Shaffer. “With good crops last year, both corn and soybeans here in the United Stated and in the world, the writing is pretty much on the wall. If South America continues to get rain and if we have a huge crop in Illinois here again, things aren’t going to be very pretty,” said Shaffer.
Farmers are often looking for a crystal ball when it comes to marketing their crops.
“The feeling by farmers is, ‘How low are we going to go?’ That’s kind of pervasive on everything. What’s low, and how low are we going to get?” said Pete Manhart, broker and owner of Bates Commodities in Normal.
Manhart said corn prices continue to slide. Unless there is really severe weather in the U.S. or other important growing areas or something unexpected happens with usage or supply, he believes there is no chance of going back to higher levels anytime soon. Manhart believes soybean prices could fall to as much as $2.00 below current levels.
The Midwest Ag Expo wrapped up on Thursday.
Carrie Muehling can be reached at carrie@wjbc.com.
